India questioned the very efficacy of IMF programs in Pakista
n, citing the country’s chronic reliance on IMF bailouts—28 out of the last 35 years—and failure to implement sustained macroeconomic reforms. In just the last five years, Pakistan has had four separate IMF programs, India pointed out, suggesting either flaws in program design, poor monitoring, or deliberate non-compliance by Islamabad.
A key concern raised by India was the Pakistan military’s deep and continuing interference in economic governance. Citing a 2021 UN report that described the Pakistani military’s economic interests as the country’s “largest conglomerate,” India noted that the armed forces now play a lead role in the Special Investment Facilitation Council—highlighting the risk of policy slippage even under a civilian government.India also referred to the IMF’s own internal evaluation report on prolonged use of its resources, which flagged perceptions of political considerations influencing lending decisions in Pakistan’s case. India warned that such repeated bailouts risk turning Pakistan into a “too-big-to-fail” debtor, diluting accountability and global norms.
Perhaps most significantly, India cautioned against the possibility of IMF funds being misused for military purposes or state-sponsored terrorism. “Rewarding continued sponsorship of cross-border terrorism sends a dangerous message, exposes donors to reputational risks, and makes a mockery of global values,” the Indian delegation reportedly said.
While several countries echoed India’s concerns, the IMF noted that its responses are often limited by procedural and technical constraints. India called for reforms to ensure that moral considerations are better integrated into IMF lending decisions.
Despite the concerns, the IMF has moved forward with deliberations on the new package. India’s abstention, while symbolic, does not block the proposal due to the IMF’s weighted voting system.
(Edited by : Ajay Vaishnav)
